Ametek Inc
AME
Industrial Instruments For Measurement, Display, and Control
Mkt Cap
$35.16BPE
27.52Debt
$2.161BCash
$841.9MEV
$36.47BFCF
$1.445BP/E Ratio
27.52Debt
$2.161BCash
$841.9MEV
$36.47BFCF
$1.445BAMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in North America, Europe, Asia, and South America. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets.Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers. This segment also operates a network of aviation maintenance, repair, and overhaul facilities. In addition, the company offers clinical and educational communication solutions. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.
DCF
Discounted Cash Flow Valuation of Ametek Inc
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.445B | $1.578B | $1.717B | $1.859B | $2.004B | $2.151B | $2.299B | $2.447B | $2.592B | $2.734B | $2.871B | $28.71B |
| DCF | $1.372B | $1.298B | $1.222B | $1.146B | $1.07B | $994.1M | $919.8M | $847.4M | $777.2M | $709.6M | $7.096B | |
| Value | $17.45B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 10%
Earnings Stability 89%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 15% | 15% | 13% | 16% | 16% | 17% | 19% | 18% | 19% | 20% |
| ROA | 14% | 14% | 11% | 12% | 12% | 12% | 10% | 11% | 12% | 13% |
| ROE | 18% | 18% | 16% | 17% | 18% | 17% | 15% | 14% | 16% | 15% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +17.42%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.66%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +11.61%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.12%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +16.11%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.6%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 3.06 | 3.86 | 3.78 | 3.27 | 3.55 | 3.23 | 2.11 | 2.72 | 2.58 | 1.50 |
| Debt Equity | 0.62 | 0.72 | 0.80 | 0.62 | 0.71 | 0.64 | 0.43 | 0.42 | 0.35 | 0.26 |
| MIN | ||||||||||
| Graham Stability | - | - | 91% | 100% | 100% | 100% | 100% | 100% | 100% | 91% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.50.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.20.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.91.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.4% | 7.4% | 6% | 11% | 0.72% |
| Net Income | 10% | 11% | 10% | 17% | 1% |
| Stockholders Equity | 13% | 13% | 13% | 8.8% | 1.6% |
| FCF | 7.6% | 5.9% | -0.056% | -3.8% | -0.83% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +7.42%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.72%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +11.22%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +1.01%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +13.17%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +1.61%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +5.91%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.83%.